Under the Degree Wellness franchise agreement, is Degree Wellness liable for agreements, representations, or warranties made by the franchisee that are not expressly authorized?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. We will not assume any liability or be deemed liable for any agreements, representations, or warranties you make that are not expressly authorized under this Agreement, nor will we be obligated for any damages to any person or property directly or indirectly arising out
of the operation of the business you conduct pursuant to this Agreement, whether or not caused by your negligent or willful action or failure to act or acts or omissions deemed to be professional malpractice.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness will not be held liable for any unauthorized agreements, representations, or warranties made by the franchisee. The franchisee operates as an independent owner of their franchised business and is responsible for their own actions and omissions, as well as those of their employees and agents. This means that Degree Wellness franchisees are solely accountable for the operation of their business and must identify themselves as independent owners.
This provision protects Degree Wellness from potential legal or financial repercussions resulting from franchisee actions that deviate from the franchise agreement or are not explicitly approved by Degree Wellness. It reinforces the independent contractor relationship between the franchisor and franchisee, which is a common arrangement in franchising.
Prospective Degree Wellness franchisees should understand that they bear the responsibility for all aspects of their business operations and must ensure compliance with the franchise agreement. They should also be aware that Degree Wellness will not cover damages arising from the franchisee's operation of the business, even if caused by negligence or malpractice. This underscores the importance of franchisees securing adequate insurance coverage and adhering to best business practices.